The Income-Tax Act, 1961
[Act No. 43 of 1961]
[13th September, 1961.]
| Contents | |
| Title | Income-Tax Act, 1961 |
| Sections | Particulars |
| Chapter I | Preliminary |
| 1. | Short title, extent and commencement |
| 2. | Definitions |
| 3. | Previous year defined |
| Chapter II | Basis of Charge |
| 4. | Charge of income-tax |
| 5. | Scope of total income |
| 6. | Residence in India |
| 7. | Income deemed to be received |
| 8. | Dividend income |
| 9. | Income deemed to accrue or arise in India |
| Chapter III | Incomes which do not form Part of Total Income |
| 10. | Incomes not included in total income |
| 10A. | Special provision in respect of newly established undertakings in free trade zone, etc. |
| 10B. | Special provisions in respect of newly established hundred per cent |
| 10C. | pecial provision in respect of certain industrial undertakings in North-Eastern Region |
| 11. | Income from property held for charitable or religious purposes |
| 12. | Income of trusts or institutions from contributions |
| 13. | Section 11 not to apply in certain cases |
| Chapter IV | Computation of Total Income |
| 14. | Heads of income |
| 15. | Salaries |
| 16. | Deductions from salaries |
| 17. | Salary", "perquisite" and "profits in lieu of salary" defined |
| 18. | [Interest on securities.]- Omitted by the Finance Act, 1988 (26 of 1988), s. 10 (w.e.f. 1-4-1989). |
| 19. | [Deductions from interest on securities.]- Omitted by s. 10, ibid. (w.e.f. 1-4-1989). |
| 20. | [Deductions from interest on securities in the case of a banking company.]- Omitted by s. 10, ibid. (w.e.f. 1-4-1989). |
| 21. | [Amounts not deductible from interest on securities.]- Omitted by s. 10, ibid. (w.e.f. 1-4-1989). C.-Income from house property |
| 22. | Income from house property |
| 23. | Annual value how determined |
| 24. | Deductions from income from house property |
| 25. | Amounts not deductible from income from house property |
| 26. | Property owned by co-owners |
| 27. | "Owner of house property", "annual charge", etc., defined |
| 28. | Profits and gains of business or profession |
| 29. | Income from profits and gains of business or profession, how computed |
| 30. | Rent, rates, taxes, repairs and insurance for buildings |
| 31. | Repairs and insurance of machinery, plant and furniture |
| 32. | Depreciation |
| 33. | Development rebate |
| 34. | Conditions for depreciation allowance and development rebate |
| 35. | Expenditure on scientific research |
| 36. | Other deductions |
| 37. | General |
| 38. | Building, etc., partly used for business, etc., or not exclusively so used |
| 39. | [Managing agency commission.]- Omitted by the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988), s. 12, (w.e.f. 1-4-1989). |
| 40. | Amounts not deductible |
| 41. | Profits chargeable to tax |
| 42. | Special provision for deductions in the case of business for prospecting, etc., for mineral oil |
| 43. | Definitions of certain terms relevant to income from profits and gains of business or profession |
| 44. | Insurance business |
| 45. | Capital gains |
| 46. | Capital gains on distribution of assets by companies in liquidation |
| 47. | Transactions not regarded as transfer |
| 48. | Mode of computation |
| 49. | Cost with reference to certain modes of acquisition |
| 50. | Special provision for computation of capital gains in case of depreciable assets |
| 51 to 53. | Advance money received |
| 54. | Profit on sale of property used for residence |
| 55. | Meaning of adjusted, cost of improvement and cost of acquisition |
| 56. | Income from other sources |
| 57. | Deductions |
| 58. | Amounts not deductible |
| 59. | Profits chargeable to tax |
| Chapter V | Income of Other Persons, Included in Assessee's Total Income |
| 60. | Transfer of income where there is no transfer of assets |
| 61. | Revocable transfer of assets |
| 62. | Transfer irrevocable for a specified period |
| 63. | Transfer and revocable transfer defined |
| 64. | Income of individual to include income of spouse, minor child, etc. |
| 65. | Liability of person in respect of income included in the income of another person |
| Chapter VI | Aggregation of Income and set off or Carry Forward of Loss |
| 66. | Total income |
| 67. | Method of computing a partner's share in the income of the firm |
| 68. | Cash credits |
| 69. | Unexplained investments |
| 70. | Set off of loss from one source against income from another source under the same head of income |
| 71. | Set off of loss from one head against income from another |
| 72. | Carry forward and set off of business losses |
| 73. | Losses in speculation business |
| 74. | Losses under the head "Capital gains" |
| 75 to 77. | Losses of firms |
| 78. | Carry forward and set off of losses in case of change in constitution of firm or on succession |
| 79. | Carry forward and set off of losses in case of certain companies |
| 80. | Submission of return for losses |
| 1[Chapter VIA and VI-B | Deductions to be Made in Computing Total Income |
| A. | General |
| B. | Deductions in respect of certain payments |
| C. | Deductions in respect of certain incomes |
| D. | Other deductions |
| Chapter VII | Incomes Forming Part of Total Income on Which no Income-Tax is Payable |
| 81 to 85. | Incomes Forming Part of Total Income on Which no Income-Tax is Payable |
| 86. | Share of member of an association of persons or body of individuals in the income of the association or body |
| Chapter VIII | Rebates and Reliefs |
| A. | Rebate of income-tax |
| 87. | Rebate to be allowed in computing income-tax |
| 88. | Rebate on life insurance premia, contribution to provident fund, etc. |
| B. | Relief for income-tax |
| 89. | Relief when salary, etc., is paid in arrears or in advance |
| Chapter IX | Double Taxation Relief |
| 90. | Agreement with foreign countries or specified territories |
| 91. | Countries with which no agreement exists |
| Chapter X | Special Provisions Relating to Avoidance of Tax |
| 92. | Computation of income from international transaction having regard to arm's length price |
| 93. | Avoidance of income-tax by transactions resulting in transfer of income to non-residents |
| 94. | Avoidance of tax by certain transactions in securities |
| Chapter XA | General Anti-Avoidance Rule |
| 95. | Applicability of GeneralAnti-Avoidance Rule |
| 96. | Impermissible avoidance arrangement |
| 97. | Arrangement to lack commercial substance |
| 98. | Consequences of impermissible avoidance arrangement |
| 99. | Treatment of connected person and accommodating party |
| 100. | Application of this Chapter |
| 101 to 109. | Framing of guidelines |
| Chapter XII | Determination of Tax in Certain Special Cases |
| 110. | Determination of tax where total income includes income on which no tax is payable |
| 111. | Tax on accumulated balance of recognised provident fund |
| 112. | Tax on long-term capital gains |
| 113 and 114. | Tax in the case of block assessment of search cases |
| 115. | Tax on capital gains in case of companies |
| Chapter XII-A | Special Provisions Relating to Certain Incomes of Non-Residents |
| Chapter XII-B and XII-C | Special Provisions Relating to Certain Companies |
| Chapter XIID | Special Provisions Relating to Tax on Distributed Profits of Domestic Companies |
| Chapter XIIE | Special Provisions Relating to Tax on Distributed Income |
| Chapter XIIF | Special Provisions Relating to Tax on Income Received from Venture Capital Companies and Venture Capital Funds |
| Chapter XIIG | Special Provisions Relating to Income of Shipping Companies |
| A. | Meaning of certain expressions |
| B. | Computation of tonnage income from business of operating qualifying ships |
| C. | Procedure for option of tonnage tax scheme |
| D. | Conditions for applicability of tonnage tax scheme |
| E. | Amalgamation and demerger of shipping companies |
| F. | Miscellaneous |
| G. | Provisions of this Chapter not to apply in certain cases |
| Chapter XIIH | Income-Tax on Fringe Benefits |
| A. | Meaning of certain expressions |
| B. | Basis of charge |
| C. | Procedure for filing of return in respect of fringe benefits, assessment and payment of tax in respect thereof |
| Chapter XIII | Income-Tax Authorities |
| 116. | Income-tax authorities |
| 117. | Appointment of income-tax authorities |
| 118. | Control of income-tax authorities |
| 119. | Instructions to subordinate authorities |
| 120 to 123. | Jurisdiction of income-tax authorities |
| 124 to 126. | Jurisdiction of Assessing Officers |
| 127 and 128. | Power to transfer cases |
| 129 and 130. | Change of incumbent of an office |
| 131. | Power regarding discovery, production of evidence, etc. |
| 132. | Search and seizure |
| 133. | Power to call for information |
| 134. | Power to inspect registers of companies |
| 135. | Power of Principal Director General or Director General or Principal Director or Director, Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner and Joint Commissioner |
| 136 an d137. | Proceedings before income-tax authorities to be judicial proceedings |
| 138. | Disclosure of information respecting assessees |
| Chapter XIV | Procedure for Assessment |
| 139. | Return of income |
| 140. | Return by whom to be verified |
| 141. | Provisional assessment |
| 142. | Inquiry before assessment |
| 143. | Assessment |
| 144. | Best judgment assessment |
| 145. | Method of accounting |
| 146. | [Reopening of assessment at the instance of the assessee.] Omitted by the Direct Tax Laws (Amendment) Act, 1988 (4 of 1988), s.53 (w.e.f. 1-4-1989). |
| 147. | Income escaping assessment |
| 148. | Issue of notice where income has escaped assessment |
| 149. | Time limit for notice |
| 150. | Provision for cases where assessment is in pursuance of an order on appeal, etc. |
| 151. | Sanction for issue of notice |
| 152. | Other provisions |
| 153. | Time limit for completion of assessment, reassessment and recomputation |
| 154. | Rectification of mistake |
| 155. | Other amendments |
| 156. | Notice of demand |
| 157. | Intimation of loss |
| 158. | Intimation of assessment of firm |
| Chapter XIVA | Special Provision for Avoiding Repetitive Appeals |
| Chapter XIVB | Special Procedure for Assessment of Search Cases |
| Chapter XV | Liability in Special Cases |
| 159. | Legal representatives |
| 160. | Representative assessee |
| 161. | Liability of representative assessee |
| 162. | Right of representative assessee to recover tax paid |
| 163. | Who may be regarded as agent |
| 164. | Charge of tax where share of beneficiaries unknown |
| 165. | Case where part of trust income is chargeable |
| 166. | Direct assessment or recovery not barred |
| 167. | Remedies against property in cases of representative assessees |
| 168. | Executors |
| 169. | Right of executor to recover tax paid |
| 170. | Succession to business otherwise than on death |
| 171. | Assessment after partition of a Hindu undivided family |
| 172. | Shipping business of non-residents |
| 173. | Recovery of tax in respect of non-resident from his assets |
| 174. | Assessment of persons leaving India |
| 175. | Assessment of persons likely to transfer property to avoid tax |
| 176. | Discontinued business |
| 177. | Association dissolved or business discontinued |
| 178. | Company in liquidation |
| 179. | Liability of directors of private company in liquidation |
| 180 and 181. | Royalties or copyright fees for literary or artistic work |
| Chapter XVI | Special Provisions Applicable to Firms |
| 182. and 183. | Assessment of firms |
| 184. | Assessment as a firm |
| 185. | Assessment when section 184 not complied with |
| 187. | Change in constitution of a firm |
| 188. | Succession of one firm by another firm |
| 189. | Firm dissolved or business discontinued |
| Chapter XVII | Collection and Recovery of Tax |
| 190. | Deductionat source and advance payment |
| 191. | Direct payment |
| 192. | Salary |
| 193. | Interest on securities |
| 194. | Dividends |
| 195. | Other sums |
| 196. | Interest or dividend or other sums payable to Government, Reserve Bank or certain corporations |
| 197. | Certificate for deduction at lower rate |
| 198. | Tax deductedis income received |
| 199. | Credit for tax deducted |
| 200. | Duty of person deducting tax |
| 201. | Consequences of failure to deduct or pay |
| 202. | Deduction only one mode of recovery |
| 203. | Certificate for tax deducted |
| 204. | Meaning of "person responsible for paying" |
| 205. | Bar against direct demand on assessee |
| 206. | Persons deducting tax to furnish prescribed returns |
| 207. | Liability for payment of advance tax |
| 208. | Conditions of liability to pay advance tax |
| 209. | Computation of advance tax |
| 210. | Payment of advance tax by the assessee of his own accord or in pursuance of order of Assessing Officer |
| 211. | Instalments of advance tax and due dates |
| 212. | [Estimate by assessee.] Omitted by the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988), s. 81 (w.e.f. 1-4-1988). |
| 213. | [Commission receipts.] Omitted by s.81, ibid. (w.e.f. 1-4-1988). Due date of instalment Amount payable On or before the 15th June Not less than fifteen per cent. of such advance tax. |
| 214. | Interest payable by Government |
| 215. | Interest payable by assessee |
| 216. | Interest payable by assessee in case of under-estimate, etc. |
| 217. | Interest payable by assessee when no estimate made |
| 218. | When assessee deemed to be in default |
| 219. | Credit for advance tax |
| 220. | When tax payable and when assessee deemed in default |
| 221. | Penalty payable when tax in default |
| 222. | Certificate to Tax Recovery Officer |
| 223. | Tax Recovery Officer by whom recovery is to be effected |
| 224. | Validity of certificate and cancellation or amendment thereof |
| 225. | Stay of proceedings in pursuance of certificate and amendment or cancellation thereof |
| 226. | Other modes of recovery |
| 227. | Recovery through State Government |
| 228. | Recovery of Indian tax in Pakistan and Pakistan tax in India |
| 229. | Recovery of penalties, fine, interest and other sums |
| 230. | Tax clearance certificate |
| 231. | [Period for commencing recovery proceedings.]-Omitted by the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988), s. 93 (w.e.f. 1-4-1989). |
| 232. | Recovery by suit or under other law not affected |
| 233. | [Recovery of tax payable under provisional assessment.]-Omitted by the Taxation Laws (Amendment) Act, 1970 (42 of 1970), s. 39 (w.e.f. 1-4-1971). |
| 234. | Tax paid by deduction or advance payment |
| Chapter XVIII | Relief Respecting Tax on Dividends in Certain Cases |
| 235. | Relief Respecting Tax on Dividends in Certain Cases |
| 236. | Relief to company in respect of dividend paid out of past taxed profits |
| Chapter XIX | Refunds |
| 237. | Refunds |
| 238. | Person entitled to claim refund in certain special cases |
| 239. | Formof claim for refund and limitation |
| 240. | Refund on appeal, etc. |
| 241. | Power to withhold refund in certain cases |
| 242. | Correctness of assessment not to be questioned |
| 243. | Interest on delayed refunds |
| 244. | Interest on refund where no claim is needed |
| 245. | Set off of refunds against tax remaining payable |
| Chapter XIXA | Settlementof Cases |
| Chapter XIX-B | Advance Rulings |
| Chapter XX | Appealsand Revision |
| 246. | Appealable orders |
| 247. | [Appeal by partner].-Omitted by the Finance Act, 1992 (18 of 1992), s. 84 (w.e.f. 1-4-1993). |
| 248. | Appeal by a person denying liability to deduct tax in certain cases |
| 249. | Form of appeal and limitation |
| 250. | Procedure in appeal |
| 251. | Powers of the Commissioner (Appeals) |
| 252. | Appellate Tribunal |
| 253. | Appeals to the Appellate Tribunal |
| 254. | Orders of Appellate Tribunal |
| 255. | Procedure of Appellate Tribunal |
| 256. | Statement of case to the High Court |
| 257. | Statement of case to Supreme Court in certain cases |
| 258. | Power of High Court or Supreme Court to require statement to be amended |
| 259. | Case before High Court to be heard by not less than two judges |
| 260. | Decision of High Court or Supreme Court on the case stated |
| 261. | Appeal to Supreme Court |
| 262. | Hearing before Supreme Court |
| 263. | Revision of orders prejudicial to revenue |
| 264. | Revision of other orders |
| 265. | Tax tobe paid notwithstanding reference, etc. |
| 266. | Execution for costs awarded by Supreme Court |
| 267. | Amendment of assessment on appeal |
| 268. | Exclusion of time taken for copy |
| 269. | Definition of "High Court" |
| Chapter XXA | Acquisition of Immovable Properties in Certain Cases of Transfer to Counteract Evasion of Tax |
| Chapter XXB | Requirement as to Mode of Acceptance, Payment or Repayment in Certain Cases to Counteract Evasion of Tax |
| Chapter XXC | Purchase by Central Government of Immovable Properties in Certain Cases of Transfer |
| Chapter XXI | Penalties Imposable |
| 270. | Failure to furnish information regarding securities, etc. |
| 271. | Failure to furnish returns, comply with notices, concealment of income, etc. |
| 272. | Failure to give notice of discontinuance. |
| 273. | False estimate of, or failure to pay, advance tax |
| 274. | Procedure |
| 275. | Bar of limitation for imposing penalties |
| Chapter XXII | Offences and Prosecutions |
| 276. | Removal, concealment, transfer or delivery of property to thwart tax recovery |
| 277. | False statement in verification, etc. |
| 278. | Abetment of false return, etc. |
| 279. | Prosecution to be at instance of Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner |
| 280. | Disclosure of particulars by public servants |
| Chapter XXIII | Miscellaneous |
| 281. | Certain transfers to be void |
| 282. | Service of notice generally |
| 283. | Service of notice when family is disrupted or firm, etc., is dissolved |
| 284. | Service of notice in the case of discontinued business |
| 285. | Submission of statement by a non-resident having liaison office |
| 286. | Furnishing of report in respect of international group |
| 287. | Publication of information respecting assessees in certain cases |
| 288 to 290. | Appearance by authorised representative |
| 291. | Power to tender immunity from prosecution |
| 292. | Cognizance of offences |
| 293. | Bar of suits in civil courts |
| 294. | Act to have effect pending legislative provision for charge of tax |
| 295. | Power to make rules |
| 296. | Rules and certain notifications to be placed before Parliament |
| 297. | Repeals and savings |
| 298. | Power to remove difficulties |
| The Schedules | |
| 1st Schedule | Insurance Business |
| 2nd Schedule | Procedure for Recovery of Tax |
| Part I | General Provisions |
| Part II | Attachment and Sale of Movable Property |
| Part III | Attachment and Sale of Immovable Property |
| Part IV | Appointment of Receiver |
| Part V | Arrest and Detention of The Defaulter |
| Part VI | Miscellaneous |
| 3rd Schedule | Procedure for Distraint by Assessing Officer or Tax Recovery Officer |
| 4th Schedule | |
| Part A | Recognised Provident Funds |
| Part B | Approved Superannuation Funds |
| Part C | Approved Gratuity Fund |
| 5th Schedule | List of Articles and Things |
| 6th Schedule | Omitted by the Finance Act, 1972 (16 of 1972), s. 43 (w.e.f. 1-4-1973). Originally, the Schedule was inserted by the Finance Act, 1968 (19 of 1968), s. 30 and the Third Schedule (w.e.f. 1-4-1969) and was later amended by the Finance (No. 2) Act, 1971 (32 of 1971), s. 30 (w.e.f. 1-4-1972). |
| 7th Schedule | |
| Part A | Minerals |
| Part B | Groups of Associated Minerals |
| 8th Schedule | List of Industrially Backward States and Union Territories |
| 9th Schedule | Omitted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986 (46 of 1986), s. 31(w.e.f. 1-4-1988). Original Ninth Schedule was inserted by the Direct Taxes (Amendment) Act, 1974 (26 of 1974), s. 16 (w.e.f. 1-4-1975). |
| 10th Schedule | Omitted by the Finance Act, 1999 (27 of 1999), s. 89 (w.e.f. 1-4-2000). |
| 11th Schudule | List of Articles or Things |
| 12th Schudele | Processed Minerals and Ores |
| 13th Schedule | List of Articles or Things |
| Part A | For The State of Sikkim |
| Part B | For The State of Himachal Pradesh and The State of Uttaranchal |
| Part C | For The State of Jammu and Kashmir |
| 14th Schedule | List of Articles or Things or Operations |
| Part A | For The North-Eastern States |
| Part B | For The State of Sikkim |
| Part C | For The State of Himachal Pradesh and The State of Uttaranchal |